A revamped scheme for a £30 million regeneration programme in the heart of Birmingham is poised to go ahead after a major planning wrangle.
Cala Homes (Midlands) has gained planning permission on appeal for the residential project alongside the city's Brindley Loop Canal Basin, on the site of the former council highways depot on Sherborne Street.
But Phil Crabtree, Birmingham City Council's assistant director of planning, said the housebuilder had ignored the authority's clear advice in its original proposal.
He said: "They chose to go down the expensive and time-consuming route of appealing to an inspector when we would have preferred to carry on working with them.
"Many of our concerns have now been met but we still think the plan could be better and we hope by continuing to work with them there can be further improvements."
He said the original scheme had a number of drawbacks, including failing to meet requirements for a suitable open space for residents, and did not properly provide a network of pedestrian routes to integrate the area with other parts of the city centre.
Mr Crabtree also said the structures initially proposed were too high.
The Birmingham-based house-builder hopes to start work in the autumn on building 167 one- and two-bed apartments with a small amount of commercial space.
The company said it reduced its original application by 18 units as well as providing a public route through the scheme to boost connections to the canal and improve the proposed residential square to the satisfaction of the planning inspector.
Mr Crabtree said the accepted application included a reduction on the height of the buildings.
And Darren Humphreys, managing director of Cala Homes (Midlands), said: "This is one of the prime remaining sites available for development in Birmingham city centre, benefiting from the extensive doorstep leisure facilities of Brindleyplace."
The company is behind developments at Broadway Plaza, the Qube and PostBox.
Keri Dobson, senior land manager, said: "The financial and professional community in Birmingham continues to grow apace, providing an influx of young professionals who want to experience the City Living lifestyle."
She said that quality of design for the new development would be paramount.
The consented scheme was designed by Tuner Woolford Sharp Architects.
Rob Turner, director at Turner Woolford Sharp, said: "Following the design of successful residential developments at Islington Gates, King Edwards Wharf and Holiday Wharf, Sherborne Street has given us the opportunity to develop our design approach and push forward contemporary city ling standards."
Cala Homes (Midlands) is part of the residential and commercial property developer Cala group.
Armed with a war chest of £50 million, the company is also pursuing residential schemes throughout the West Midlands.
On Wednesday Cala expects to hear the outcome of a joint planning application with student accommodation provider Unite for a £30 million development in Selly Oak.